In a landmark ruling that could reshape how social media companies do business, a New Mexico court has ordered Meta to pay $942 million for harming children's mental health through its Facebook and Instagram platforms. The case marks the first time a court found the tech giant liable for harm committed on its sites.
After a seven-week trial in March, a jury agreed that Meta violated New Mexico's consumer protection laws by creating addictive features and hiding what it knew about dangers to young users. The jury also found the company made misleading statements and engaged in unfair practices that took advantage of children's vulnerabilities. That phase resulted in a $375 million penalty.
This week, after the second phase concluded, Judge Bryan Biedscheid added another $567 million to the tab, bringing the total to $942 million. Of that, $420 million will fund treatment services for young people across New Mexico over the next five years. The remainder will cover awareness campaigns, prevention programs, and screening services.
The case was brought by New Mexico Attorney General Raúl Torrez, who framed it as a battle for children's safety. "This case has always been about protecting children, standing up for families, and making sure that one of the world's largest technology companies cannot profit from practices that endanger young people without consequence," he said in a statement. "Today's decision is a victory for every parent who has worried about what social media is doing to their child and every child who deserves to grow up safer online."
The ruling goes beyond just fines. Meta must overhaul how it handles young users. The company must improve age-assurance tools that use artificial intelligence to estimate users' ages by analyzing friend lists and the content they post and view. Within two years, Meta must develop a dedicated system to predict whether users are under 13.
Additionally, Meta must request proof of age from users it estimates to be under 13 on Facebook and Instagram in New Mexico. If a user cannot verify their age, the company must treat them as under 13 or under 18 until they do. Meta must also partner with schools or child safety groups to create a reporting portal where staff can flag potentially underage users. The company must delete personal information it has collected on users under 13.
The court noted that federal privacy laws prevent Meta from applying age-verification tools to children under 13, so the ruling focuses on the AI-based prediction approach instead.
This case is part of a larger wave of litigation. All 40 U.S. states have filed similar claims against Meta, accusing the company of deliberately designing addictive Instagram and Facebook features that have contributed to a mental health crisis among young people. The New Mexico ruling could influence how those cases proceed.